McKinley County Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in McKinley County, New Mexico
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their permit
- Who Regulates Pawnbrokers in McKinley County: The McKinley County Clerk
Background
The McKinley County Pawnbrokers Ordinance requires all pawnbrokers operating in the county to obtain a permit from the McKinley County Clerk. The McKinley County Board of Commissioners enacted the permitting requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for a permit.
What is the Purpose of the McKinley County Pawnbroker Bond?
McKinley County requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker permit. The bond protects the public from financial harm if the pawnbroker fails to comply with the regulations set forth in the McKinley County Pawnbrokers Ordinance. Specifically, the bond protects the public if the pawnbroker engages in any acts of fraud or breaches any consumer contracts. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their permit.
How Can an Insurance Agent Obtain a McKinley County Pawnbroker Surety Bond?
BondExchange makes obtaining a McKinley County Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the McKinley County Pawnbroker Bond?
No, a credit check is not required for the McKinley County Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the county, regardless of their credit history.
How Much Does the McKinley County Pawnbroker Bond Cost?
The McKinley County Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
McKinley County requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker permit. To paraphrase the McKinley County Pawnbrokers Ordinance, a pawnbroker is a person who issues loans to individuals that leave their personal property, as collateral, for the broker to sell on condition that the customer may repurchase the property within a fixed period of time.
Pawnbrokers who are already permitted in the City of Gallup are not required to obtain a permit from McKinley County.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Pawnbrokers Apply for a Permit in McKinley County?
Pawnbrokers in McKinley County must navigate several steps to obtain a permit. Below are the general guidelines, but applicants contact the County Clerk for details on the process.
Permit Term– All McKinley County Pawnbroker Permits expire on July 1 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 2 – Complete the Application
Pawnbrokers can request a permit application from the County Clerk, which they must complete and submit by mail to the following address:
207 West Hill Avenue
Gallup, NM 87301
Pawnbrokers must complete the form in its entirety and submit a $200 application fee along with a completed surety bond form with it. All applicants will be subject to a background check by the McKinley County Sheriff prior to being issued a permit.
How Do McKinley County Pawnbrokers Renew Their Permits?
Pawnbrokers should contact the McKinley County Clerk to obtain a renewal application before their permit expires. All McKinley County Pawnbroker Permits expire on July 1 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnbrokers in McKinley County?
McKinley County does not require pawnbrokers to purchase any form of liability insurance. However, brokers may need to obtain insurance as a prerequisite to obtaining a state business permit. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do McKinley County Pawnbrokers File Their Bonds?
Pawnbrokers should mail their completed bond forms, including the power of attorney, to the County Clerk’s Office at the following address:
207 West Hill Avenue
Gallup, NM 87301
The bond requires signatures from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond goes into effect and expires
What Can McKinley County Pawnbrokers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, pawnbrokers in McKinley County must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Maintain all required transaction records
- Return all pledged goods that have been paid for
- Obtain proof of identification during each transaction
What Other Insurance Products Can Agents Offer Pawnbrokers in McKinley County?
Most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for McKinley County Pawnbroker Customers?
McKinley County unfortunately does not provide a public database of active pawnbrokers in the county. We suggest contacting the McKinley County Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
